The Bookkeeping Act and the new rules have been in force since 1 July 2022, but implementation is taking place gradually. On 1 July 2024, the requirement for digital bookkeeping came into effect for the first group of businesses – and from 1 January 2026, the requirement will also apply to the final group of businesses, namely those that do not submit annual reports, such as sole proprietorships. You can read more about the Bookkeeping Act in this blog post, where we have gathered all the relevant information in a clear and accessible format.
What is the new Danish Bookkeeping Act?
The new Bookkeeping Act entered into force on 1 July 2022, and its requirements are being implemented gradually. In particular, the requirements concerning digital bookkeeping and the use of registered bookkeeping systems have been introduced over a number of years. The goal is for all Danish businesses subject to the new rules to be compliant by 2026. Do you need assistance with bookkeeping? Then read on.
Updates: Guidance versions 3 and 4
In March 2025, the Danish Business Authority (Erhvervsstyrelsen) published version 3 of the guidance, which states that the requirement for digital bookkeeping will take effect on 1 January 2026 for businesses not obliged to submit annual reports – for example, sole proprietorships – if their net turnover exceeds DKK 300,000 in two consecutive years. Appendix A in the guidance explains how turnover is calculated, including for new businesses or in cases where a business’s turnover changes. Further information is available here.
In June 2025, version 4 of the guidance was released, clarifying what “as soon as possible” means in relation to the recording of transactions.
When does the new Bookkeeping Act take effect?
Although the Act officially came into force on 1 July 2022, its implementation has been phased in over several years:
- From 1 July 2024: Businesses that use a registered bookkeeping system and are required to submit annual reports
- From 1 January 2025: Businesses required to submit annual reports but not using a registered bookkeeping system
- From 1 January 2026: Businesses not required to submit annual reports, such as sole proprietorships, associations, and branches, provided that net turnover exceeds DKK 300,000 in two consecutive years (according to version 3 of the guidance).
This means that, from 1 January 2026, the requirements in the Bookkeeping Act will be fully rolled out, and all the specified businesses must comply with the new rules.
Who is the Bookkeeping Act applicable to?
The Act applies to all businesses that are subject to bookkeeping requirements, regardless of size.
This includes, among others:
- Businesses that submit annual reports to the Danish Business Authority
- Small businesses, associations, and branches with turnover exceeding DKK 300,000 for two consecutive years.
Approximately 300,000 businesses will need to ensure their bookkeeping systems comply with the new standards.
The Bookkeeping Act and the requirement for digital bookkeeping apply to all businesses obliged to submit annual reports and report to the Danish Business Authority, regardless of size. However, the Act also applies to businesses not required to submit annual reports or report to the Danish Business Authority, including sole proprietorships, associations, and branches, if their turnover exceeds DKK 300,000 in two consecutive years.
What changes does the new Bookkeeping Act include?
The introduction of the new Bookkeeping Act brought several significant changes, including:
- All accounting material must be stored digitally. This storage must comply with current GDPR regulations, and businesses are required to create and maintain a secure backup of this material. The frequency of backups depends on the complexity of the business and the number and size of transactions. The law specifies that businesses with a high volume of daily transactions must make daily backups.
- The definition of accounting material was expanded to include documentation for factual statements in the management’s review section of the company’s annual report.
- Businesses must prepare a written description of procedures for registering transactions and storing accounting material.
- The Danish Business Authority is authorised to carry out bookkeeping inspections of businesses that have not submitted their first annual report or have opted out of audit.
- A significant increase in fines was introduced.
If you need help with bookkeeping, you can read more here.
What must be stored digitally?
From 1 July 2024, it will be mandatory to store all accounting records digitally. The following must therefore be stored digitally:
- Vouchers/receipts
- Records, among other things, the transaction trail
- Description of the company’s bookkeeping procedures
- All information essential to the audit trail
- Documentation for information given in the notes and management’s report in the annual report, and for estimates and assessments made in connection with the preparation of the company’s annual report
- Accounts that are required to be prepared in accordance with legislation
- Any auditor’s records or equivalent reporting.
Businesses must be able to document their digital bookkeeping if requested during inspections by the Danish Business Authority.
Higher fines for non-compliance
The new Bookkeeping Act also introduced stricter rules and significantly higher fines for businesses that fail to comply. The Danish Business Authority has the power to demand access to accounting records and carry out audits of businesses that have not submitted their first annual report or have opted out of audits. If a business cannot produce the original digital accounting material or provide access to the backup, it may be fined. These fines range from DKK 10,000 for minor breaches in smaller businesses up to DKK 1.5 million for major breaches in larger businesses.
To avoid penalties, it is essential that businesses understand and follow the new accounting rules.
Do you need help or advice?
Being faced with new requirements is rarely ideal. However, this legislative change may accelerate the adoption of new habits and workflows that reduce time spent on manual processes. With the right partner, your business can experience a smoother transition to the new regulations, digital systems, and procedures.
If you require help or support, feel free to contact us on 70 232 232 for a general discussion on how best to approach the transition to the new Bookkeeping Act in your business.